The headlines today are scary…
From geopolitics… to the economy… to the markets… It’s wave after wave of negativity.
Just this past week, I saw:
CNN on the Russia-Ukraine war: Mariupol Is Hell on Earth
Yahoo Finance on the global economy: Risk of Global Recession by End of Year Rises on High Inflation
Market Insider on U.S. equities: Stock market indicator has tumbled into a bear market, sending a warning sign for the economy
Coin Telegraph on crypto: Bitcoin price dip to $39.2K places BTC back in ‘bear market’ territory
I know you see these headlines, too… And many of you write to me, asking about them.
When will the Russia-Ukraine war end? Will rising inflation cause a global recession? Will the stock market crash? Will the government ban bitcoin?
First, I understand your concerns and fears. They’re perfectly normal in times like this.
I’m not a trained economist or geopolitical strategist. Thank goodness I never needed to be one to make boatloads of money from the markets.
Neither do you.
Not even the world’s most celebrated macro analysts and economists can tell you exactly what will happen next.
These brilliant minds, with their string of credentials after their names, have been repeatedly, spectacularly wrong.
Whether it was famed economist Paul Krugman stating the internet would impact the economy as much as the fax machine… or former Microsoft CEO Steve Ballmer calling the first iPhone a “toy.”
Again and again, we have seen world-class experts being utterly wrong about the future.
Think about Jerome Powell, the chair of the Federal Reserve. He helms the world’s most powerful central bank. Ivy League advisors surround him…
Yet, he was dead wrong last year when he called rising inflation “transitory.”
Today, we’re seeing record-high inflation. And it’ll likely take months before it eases.
The U.S. intelligence community is full of smart people, too. Many of them said Ukraine could fall within days of Russia’s invasion. It’s now more than two months later, and Ukraine’s still standing.
I’m not trying to take potshots at Powell or our intelligence community… Really smart men and women work for these agencies.
And they’re doing their best to inform the public about fluid developments. So, I don’t envy them.
My point is this: Even the smartest people in the world can’t give you certainty about any given issue.
That’s because certainty is a myth.
I prefer to provide educated viewpoints based on years of sound research. That’s what gives me an edge regardless of market conditions.
Don’t Try to Time the Market
A lot of investors try to forecast macroeconomic or geopolitical events like inflation or war… and then make money in the markets by guessing the outcome correctly.
I don’t do that.
There are only two things I want to know when it comes to the big picture…
First, am I in a long-term (secular) bull market or bear market?
If I’m in a secular bull market, I know that stock prices will grind higher for 12–20 years…
Once I know the long-term trend, I determine the short-term (cyclical) trend.
In every bull market, you have periods when stock prices are weak. These are called cyclical bear markets. (We are in a cyclical bear market right now.)
So, I make money in a secular bull market by looking for quality companies and world-class assets… and use short-term (cyclical) market weakness to buy them.
Let me give you an example…
Back in 2014 – when the current bull market was just five years old – I told a group of investors that a rare event would kick off a massive run for the ages.
I predicted the bull market would last until 2028.
A little less than a year later, my prediction looked shaky. In August 2015, China began a series of devaluations of the yuan. The surprise moves caused global markets to panic.
From the August 2015 highs to February 2016 lows, the S&P 500 plunged 14% in just seven months. That’s almost correction territory.
At the time, I didn’t know how long China would continue devaluing its currency.
But I did know if you bought world-class assets during this “cyclical” bear market occurring within a “secular” bull market… you’d make a killing.
Remember, a cyclical bear market is different from a “secular” bear market.
Secular markets are long-term “one-way” directional moves that generally last between 12–20 years.
Cyclical markets are shorter periods within secular markets. They generally last 6–18 months.
And the cyclical bear market that followed China’s devaluation of the yuan was a perfect buying opportunity.
For example, companies like Nvidia, Applied Materials, and Amazon rocketed 1,135%, 379%, and 245%, respectively, in the two years following the market rebound.
You didn’t need a crystal ball. You didn’t need a fortune teller. You didn’t need an oracle.
To make money, all you needed to know was this: We were in a short-term cyclical bear market within a long-term secular bull market. When that happens, you just buy quality companies and make a killing when the market sentiment shifts back to bullish.
We saw a similar situation in March 2020, when the market crashed 30% during the pandemic outbreak.
While everyone was panicking, I told my readers not to sell a single share… I went on record and predicted the bull market would run another 10 years.
Since then, the market is up 93% – even with the recent pullback.
Did I have some premonition about how the pandemic would unfold? No. I didn’t. What I did have was the knowledge that we were in a long-term (secular) bull market.
And when you are in a secular bull market, you must treat every pullback as a buying opportunity.
I knew the pandemic had created a short-term cyclical bear market we could take advantage of. So I told my subscribers to use the volatility to buy world-class assets at a discount.
After the market rebounded, blue-chip companies like Advanced Micro Devices, Lowe’s, and Deere rocketed 318%, 302%, and 294%, respectively. And cryptos like bitcoin and Ethereum have rallied 1,688% and 5,308%, respectively, from their pandemic lows.
To the uninitiated, my bull market call would have looked awful in 2015 when China devalued the yuan… and again in 2020 after the pandemic-induced lockdowns.
In hindsight, you can see I was running the playbook that has helped make my subscribers and myself wealthy.
Patience Pays Off
Friends, the takeaway here is simple…
If you believe we’re in the middle of a long-term secular bull market (as I do), you use any cyclical weakness to buy blue-chip stocks and world-class assets when they are cheap.
You can start with high-quality companies that pay superior yields. The NYSE is chock full of blue-chip names paying 4% dividends right now. And in the crypto space, consider allocating up to 10% of your portfolio to bitcoin.
Even if the market weakens more, it doesn’t bother me because we are in a secular bull market. That means even if my timing is less than ideal, the market will bail me out because we are in a secular bull market.
You don’t need a team of Ivy League economists… geopolitical experts… or media talking heads during times like this.
All you need is the conviction that you’re buying world-class assets on the cheap during a pullback within a long-term bull market.
Let the Game Come to You!
P.S. As I mentioned above, blue-chip assets are one of the best ways to profit through volatility… but your returns don’t have to stop there.
You can take that safe, blue-chip income and put a portion of it into what I call “asymmetric trades.”
These ideas can turn $1,000 into $10,000… $100,000… or even $1 million… and your steady blue-chip income stream means any losses are easily replenished.
So, they’re one of the best ways to position yourself for life-changing gains without putting your current lifestyle at risk.
But this strategy isn’t limited to just stocks…
A one-time market event is about to trigger a historic panic… and create a similar opportunity in a select handful of cryptos.
These special cryptos make massive gains of 3x, 5x, 10x, and more. On top of that, they generate huge slugs of income with annual yields as high as 300%.
(That’s 215 times higher than the average dividend yield on the S&P 500… and 95 times higher than the yield on the 20-year Treasury.)
I explained how the coming crypto panic won’t be a sell-off… and why following my panic playbook could return generational wealth.
For a limited time, you can click here to watch the entire replay… but do it soon.
When this crypto panic triggers in the next few months, it’ll be too late to position yourself for the biggest rewards.